Ozg Corporate Funding Consultant
Ozg Center, New Delhi & Mumbai
Website: http://fundraising.ozg.in
To book an appointment with Ozg Fundraising Consultants, please go to: ozgcenter.com/appointment
Phone # +91 (0) 88-007-25647
To book an appointment with Ozg Fundraising Consultants, please go to: ozgcenter.com/appointment
Email: funding.consultant@ozg.co.in
RBI/2012-13/429
A.P. (DIR Series) Circular No. 87
March 5, 2013
To
All Category - I Authorised Dealer Banks
Madam / Sir,
External
Commercial Borrowings (ECB) Policy –
Corporates under
Investigation
Attention of Authorized Dealer
Category - I (AD Category - I) banks is invited to the A.P. (DIR Series)
Circular No. 71 dated June 30, 2009 and Third Amendment to FEMA Notification
No.3 (FEMA 197/2009-RB) dated September 22, 2009.
2. As per the extant guidelines,
corporates that are under investigation by any law enforcing agencies like the
Directorate of Enforcement (DoE), etc. are not allowed to access ECB under the
Automatic route. Any request by such corporates for ECB is examined by the
Reserve Bank under the approval route.
3. On a review, it has been
decided to permit all entities to avail of ECBs under the automatic route as
per the current norms, notwithstanding the pending investigations /
adjudications / appeals by the law enforcing agencies, without prejudice to the
outcome of such investigations / adjudications / appeals. Accordingly, in case of all applications
where the borrowing entity has indicated about the pending investigations /
adjudications / appeals, Authorised Dealers while approving the proposal shall
intimate the concerned agencies by endorsing the copy of the approval letter.
The same procedure will be followed by the Reserve Bank of India also while
approving such proposals.
4. The modifications to the
ECB guidelines will come into force with immediate effect. All other aspects of the ECB policy, under
the Automatic route such as amount of ECB,
eligible borrower, recognised lender, end-use, all-in-cost ceiling,
average maturity period, prepayment, refinancing of existing ECB and reporting
arrangements remain unchanged.
5. Necessary amendments to the
Foreign Exchange Management (Borrowing or Lending in Foreign Exchange)
Regulations, 2000 dated May 3, 2000 have been issued vide Notification
No.FEMA.256/2013-RB dated February 06, 2013, notified vide G.S.R.No.125(E)
dated February 26, 2013.
6. AD Category - I banks may
bring the contents of this circular to the notice of their constituents and
customers concerned.
7. The Directions contained in
this circular have been issued under sections 10(4) and 11(1) of the Foreign
Exchange Management Act (FEMA), 1999 (42 of 1999) and are without prejudice to
permissions / approvals, if any, required under any other law.
Yours faithfully
(Rudra Narayan Kar)
Chief General
Manager-in-Charge
Ozg Corporate Funding Consultant
Ozg Center, New Delhi & Mumbai
Website: http://fundraising.ozg.in
To book an appointment with Ozg Fundraising Consultants, please go to: ozgcenter.com/appointment
Phone # +91 (0) 88-007-25647
To book an appointment with Ozg Fundraising Consultants, please go to: ozgcenter.com/appointment
Email: funding.consultant@ozg.co.in
